ENT-28 REQUIRE POSTSECONDARY INSTITUTIONS TO SHARE
       THE RISK OF DEFAULTS ON STAFFORD LOANS

                               Annual Savings              Cumulative
                            (Millions of dollars            Five-Year
Savings from     -----------------------------------------   Savings
CBO Baseline     1994     1995      1996     1997     1998
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             Define the Allowable Default Rate as a One-Year Rate

Outlays           30        45        45       45       45        210

        Lower the Allowable Default Rate to 20 Percent Over Three Years

Outlays           25        40        40       40       40        190

       Lower the Allowable Default Rate to a One-Year Rate of 20 Percent

Outlays           30        50        50       50       50        230

         Require Postsecondary Institutions to Pay a Loan Default Fee

Outlays          85       125       125      125      125        580
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